The 1983 Crash and How Nintendo Rebuilt the Industry

United States home console revenue collapsed from around 3.2 billion dollars in 1983 to roughly 100 million by 1985. A flood of rushed titles, led by the infamous E.T.

the Extra Terrestrial, destroyed consumer trust, and Atari buried unsold cartridges in a New Mexico landfill, confirmed by a 2014 excavation. Nintendo entered in 1985 with the NES, a lockout chip and the Seal of Quality.

Strict licensing restored confidence, and the console business has grown almost continuously ever since..